Toll road operator Transurban Group
(ASX:TCL) has bought Sydney’s Lane Cove Tunnel for $630.5 million.
The group says it will fund the acquisition by raising $542 million in capital in an entitlement offer.
The 3.6km roadway will increase Transurban’s exposure to Sydney’s north-west corridor. It also owns the M2 motorway, next to the Lane Cove Tunnel.
The acquisition covers the assets and remaining 27-year motorway concession deed for the tunnel.
The group says the capital raising takes into account its broader capital funding requirements for growth projects including the planned upgrades of the Hills M2 and M5.
Connector Motorways Pty Ltd, which operates the tunnel, was placed in receivership in February with debts of over $1.1 billion.
Transurban says its distribution guidance of 12 cents for the second half of the financial year will not change as a result of the acquisition and capital raising.
Transurban Group reported a loss of $24.58 million for the 2009 financial year.
